Vietnam’s electric car maker VinFast said it is planning to invest up to $200 million to set up assembly units in India and Indonesia with production expected to commence by 2026.
Related: VinFast of Vietnam Begins Hiring in India
Each CKD facility in Indonesia and India has a planned total capacity of up to 50,000 cars per year and an estimated total capital expenditure of $150-200 million in the first phase, the company said. According to a company statement:
“Vinfast is aiming to access the tremendous potential for increased EV adoption in India and Indonesia where EV penetration is currently only around 1%. The establishment of VinFast facilities in these local markets can provide access to government incentives for local manufacturing, relief from certain tariffs and taxes and access to raw materials at attractive rates.”
The company, however, did not elaborate further on where the plant will be set up in these countries and what models will be assembled.
VinFast said it has optimized its capital expenditure plan for global manufacturing in 2024 and 2025, which is expected to save about $400 million, compared to earlier guidance. According to the statement:
“These savings are expected to be used towards building CKD factories in Indonesia, the most populous country in Southeast Asia, and India, the third largest auto market in the world.”
Related: Vietnam’s VinFast Now Values More Than Ford and GM
The company’s CFO David Mansfield said, VinFast is on track to meet its deliveries guidance and is well-positioned to expand its global foothold, calling Indonesia and India as its strategic markets.
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